Simple and Fast Way to finance Bank Owned REO Properties in the Twin Cities, MN MetroLIST OF ITEMS REQUIRED TO UNDERWRITE A
REHAB LOAN
Required Documentation:
1. A PERSONAL FINANCIAL STATEMENT (PFS) FOR EACH PARTNER with an interest of 20% or more.
2. BANK STATEMENTS and ASSET STATEMENTS for any and all accounts listed on the PFS
3. LAST 3 YEARS' TAX RETURNS (business & personal) for each partner with an interest of 20% or more in the project.
4. COPY OF FULLY EXECUTED PURCHASE CONTRACT.
5. SWORN CONSTRUCTION STATEMENT including hard and soft costs.
6. BACKGROUND/BIO ON EACH PARTNER emphasizing development/construction/renovation/real estate experience and past projects successfully completed.
7. PERMISSION TO RUN CREDIT REPORT(S): (FOR EACH PARTNER WITH AN INTEREST OF 20% OR MORE).
General Loan Requirements:
1. Minimum 660 FICO score
2. If rental, minimum 1.25 Debt Service Coverage Ratio (DSCR)
3. If using DTI, maximum of 45%
· Can blend with global calculation
4. If DTI and DSCR do not work we can use marketing plan and pledge payment reserves to bank
5. Six months reserves
6. Purchase plus construction = X, Loan amount = 80% of X
*** The documents listed above are the documents we require to evaluate the borrower and issue a pre-approval. Every deal is different so the bank may require some additional documentation or clarification. ***
In the Minneapolis and St Paul, MN Metro all Rehab Mortgage Loan questions are being answered by Tim Jochim. He is our experienced Rehab Construction Loan expert!
Tim Jochim 612-702-1111
